Mahanoy authority raises rates, but many will not see increases

MAHANOY CITY - The Mahanoy Township Authority Board of Directors approved a water rate increase at its Nov. 21 meeting, but for many customers the increase will be minimal to nothing depending on water usage.

The rate increase will be included in all bills to consumers received on or after Dec. 1. The increase ranges from zero for small water users to 16.1 percent for the largest users and 7.9 percent for average water consumers.

"A water rate increase is necessary because of operation, maintenance and debt service cost increases," MTA general manager Robert J. Legutko said. "MTA will continue to provide the services necessary to deliver safe drinking water to its customers."

The schedule of water rates for metered accounts shows no change for minimum usage. For example, the minimal water usage for a home with a 5/8-inch or 3/4-inch meter line will remain at $55.37 per quarter for up to 350 cubic feet, or 2,618 gallons, per quarter. A company with a 10-inch meter line - the largest line on the schedule - will remain at $6,367.87 per quarter for up to 2,000 cubic feet, or 14,961 gallons.

The last rate increase was in 2008.

"This impacts the lower-end users the least because it stays exactly the same," Legutko said. "So if you use the minimum amount up to 350 cubic feet, it doesn't change. Most of your single-income (homes) are at the minimum or slightly above that."

The meter quantity charge is subject to the minimum charges plus the rates per 100 cubic feet above the minimum. When usage goes above the minimum allowance for all meter sizes from 5/8 inch to 10 inches, the rates increase according to usage as shown in the following schedule:

- First 350 cubic feet, or 2,618 gallons, per quarter: minimum service charge of $15.82 per 100 cubic feet usage.

- Next 1,650 cubic feet, or 12,342 per quarter: $7.31 per 100 cubic feet usage. (The former rate was $6.24).

- Next 20,000 cubic feet, or 149,610 gallons, per quarter: $4.98 per 100 cubic feet usage. (The former rate was $4.25).

- All over 20,000 cubic feet per quarter: $3.47 per 100 cubic feet usage. (The former rate was $2.95).

Legutko said a five-year study was done to determine the financial needs of the water authority into the near future, which in turn would lead to adjustment in rates as needed.

"The water rate study said we needed to raise the rates this now," Legutko said. "Right from the start, the board of directors told the company who did the study to favor the people who could afford it the least. So, your larger-end users who use more will pay more but they have a recourse to use less. If our users want to save on the increase, they need to find ways to conserve water and we can give them ways to conserve. It behooves them to try minimize what they use, such as low-flow showers, full load of washes, and more."

Legutko said the authority is engaged in the planned Lofty Dam rehabilitation project, which is estimated to cost about $2.5 million. The project is in the engineering phase.

The authority is mandated by the state Department of Environmental Protection to make improvements at the dam breast to handle a 500-year storm by raising the dam breast while improving the spillway so that when water levels rise due to large increases in stormwater intake, the overflow will leave the reservoir through the spillway and not flow over the breast. The rehabilitation will improve safety.

The project will be paid through a $1.6 million grant from the Commonwealth Finance Authority for two-thirds of the project cost and more than a $800,000 low-interest loan from the Pennsylvania Infrastructure and Investment Authority, or PennVEST. Paying back the loan is one reason for the rate increase.

Legutko said water conservation tips and the complete schedule of water rates are available at the authority website at www.mahanoywater.com. Information is also available by calling the authority office at 570-773-0650.

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